ADM approached GrainCorp in October with a non-binding offer of A$11.75/share and later raised it to A$12.20/share, but GrainCorp rejected it in December.

On Wednesday, ADM said GrainCorp has indicated that ADM’s offer would be recommended to its board for approval.

“With the world’s population growing by half a billion people every decade, and with rising incomes driving increased consumption of grains and protein, global demand for agricultural products will continue to see significant growth. GrainCorp provides an excellent platform to serve that growth, particularly in fast-growing markets in the Middle East, Africa and Asia,” said ADM CEO Patricia Woertz.

“Together, ADM and GrainCorp will give customers around the world access to a more diversified origination portfolio while providing Australian growers with greater access to world markets, enhanced logistics and leading market insight,” she added.